THE budgetary proposal binding all salaried and non-salaried taxpayers and certain categories of businessmen and professionals to file tax returns and wealth statements is a step in the right direction. Even those earning below the tax exemption threshold are now required to file returns and wealth statements irrespective of their income or value of assets. It is a significant move to document the economy and, going forward, should help broaden the narrow tax base. But its implementation will be a challenge, and the intended results will take many years to yield. For now, the government has decided to live with the existing taxpayers, who mostly comprise fixed-income groups and are made to pay their taxes. In fact, the government has now chosen to milk more revenue from them.
Next year, the government will take away billions of rupees in additional taxes from the poor and fixed-income groups and that money will go to wealthy bankers, corporations, and other businesses. If any money is spared by the rich, it will in all likelihood be used to finance the budget deficit, luxuries of the rulers and large projects, many of which are not needed by the hungry and jobless people of this country — at least not at the moment. It is disappointing that no thought appears to have been spared for the financial difficulties of the common man. Instead of a serious attempt to widen the tax net for more equitable sharing, taxes to be paid by existing taxpayers have been raised directly and indirectly. This is an unacceptable solution to increasing tax generation and will only compound the miseries of the common people. The government has already indicated raising power prices to pass on the impact of the electricity theft and system losses it appears unable to control to the consumers. Such measures on top of increased taxes will exacerbate the financial burden of the common man.